Wise words from forextrader a few line back in the thread. No I would not choose to be long the Euro against the dollar. Better long sterling, which is ignoring its fundamentals and powering up. The price action tells you all. But nevertheless the dollar is headed to 72 on the index.
Rob, you are correct. The Federal Reserve will not "allow" it to happen. I foresee a time when Central Banks will be powerless to defend fiat Money. The hypothesis behind fiat money is that there stands behind it a country of taxpayers able and willing to back the government's currency and its debt. I believe that that is the hypothesis which is now coming into question.
Recently, gold has not really gone up against fiat money, and it is lazy: it does not want to. It is rising in terms of the real goods it will buy. But it is actually falling against Mickey Mouse currencies such as the .
Unless it is forced up, gold will stay the same, because it appears riskier to hold than fiat money because fiat money does not have an exchange rate against itself, only against goods, whereas gold has a conversion rate against both.
But soon, but not untill a year or two, the time will come when a third stage will come. That is the time when Treasuries will yield over 6%, and that rate will be the market's evaluation of US Government creditowrthiness, not of inflation, as tax yields fall and government deficits continue.... it is already beginning - see the 10 and 30 year Treasury rates now.
Then, gold will come into its own. I say US$ 16,000 per oz. But not now, so this is not a time to trade gold. You just buy a little every little the market goes down.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(1 year ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(1 year ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(1 year ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (1 year ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (1 year ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (1 year ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(1 year ago)
The dollar has gone very wrong. It is straight dow from here.
Recently, gold has not really gone up against fiat money, and it is lazy: it does not want to. It is rising in terms of the real goods it will buy. But it is actually falling against Mickey Mouse currencies such as the .
Unless it is forced up, gold will stay the same, because it appears riskier to hold than fiat money because fiat money does not have an exchange rate against itself, only against goods, whereas gold has a conversion rate against both.
But soon, but not untill a year or two, the time will come when a third stage will come. That is the time when Treasuries will yield over 6%, and that rate will be the market's evaluation of US Government creditowrthiness, not of inflation, as tax yields fall and government deficits continue.... it is already beginning - see the 10 and 30 year Treasury rates now.
Then, gold will come into its own. I say US$ 16,000 per oz. But not now, so this is not a time to trade gold. You just buy a little every little the market goes down.
Pilot30127